I think that bit was awesome. Norm MacDonald is a great comedian, and he can deliver everything just perfectly.
That's a perfect example of a comedian taking something supposedly solemn and turning it funny. Kind of like when a chef takes an off-cut of meat and turns it into something delicious.
[edit] It was 18 days after 9/11 at the Friars club roast of Hugh Hefner
Also, I recall a celebrity had a dead crocodile hunter costume for Halloween (Irwin died in September).
[edit] It was Bill Maher.